30 August, Moscow Ros Agro financial results for 1H and Q2 Moscow, 30 August Today ROS AGRO PLC (the Company ), the holding company of Rusagro Group (the Group ), a leading Russian diversified food producer with vertically integrated operations, has announced the financial results for the six months. 1H Highlights - Sales amounted to RR 14,343 million rubles (US$ 462 million), an increase of RR 283 million compared to 1H ; - Adjusted EBITDA (*) amounted to RR 1,580 million (US$ 51 million), a decrease of RR 2,398 million compared to 1H ; - Adjusted EBITDA margin amounted to 11; - Net loss for the period amounted to RR 283 million (US$ 9 million); - Net debt position (**) as of was RR 15,170 million (US$ 464 million); - Net Debt/ EBITDA (LTM) (***) as of was 2.4x. Commenting on the results, Maxim Basov, a member of the Board of Directors of ROS AGRO PLC and CEO of the Group, said: In the 2 nd quarter Rusagro returned to profitability. Sugar, meat and oil divisions continued to show weak performance due to the lack/quality of raw material and weakness in prices. We expect these divisions to improve results in 3Q as the new agricultural season starts in Russia. Key consolidated financial performance indicators Sales 14,343 14,060 2 7,926 7,758 2 Gross profit 2,094 5,014-58 1,265 2,852-56 Gross margin, 15 36 16 37 Adjusted EBITDA 1,580 3,978-60 1,039 2,491-58 Adjusted EBITDA margin, 11 28 13 32 Net (loss)/profit for the period (283) 1,917-115 295 1,360-78 Net profit margin -2 14 4 18 1
Key financial performance indicators by segments Sales, incl. 14,343 14,060 2 7,926 7,758 2 Sugar 7,374 6,383 16 4,596 3,565 29 2,508 2,625-4 1,434 1,402 2 Agriculture 1,201 1,071 12 349 272 28 Oil 3,536 4,359-19 1,585 2,536-37 Other 77 143-46 38 54-30 Eliminations (352) (522) -33 (76) (71) 7 Gross profit, incl. 2,094 5,014-58 1,265 2,852-56 Sugar 944 1,957-52 559 1,224-54 108 1,184-91 228 628-64 Agriculture 211 149 42 56 (42) -232 Oil 829 1,527-46 385 900-57 Other 77 143-46 38 54-30 Eliminations (75) 54-238 (0) 87-100 Adjusted EBITDA, incl. 1,580 3,978-60 1,039 2,491-58 Sugar 292 1,236-76 213 877-76 455 1,215-63 406 659-38 Agriculture 380 21 1696 157 (111) -241 Oil 249 1,020-76 6 627-99 Other (148) (83) 77 (42) (38) 13 Eliminations 352 570-38 299 477-37 Adjusted EBITDA margin, 11 28 13 32 Sugar 4 19 5 25 18 46 28 47 Agriculture 32 2 45-41 Oil 7 23 0 25 Sugar Segment Financial results of the sugar segment for 1H and Q2 compared to 1H and Q2 respectively are presented in the table below: Sales 7,374 6,383 991 16 4,596 3,565 1,031 29 Cost of sales (6,552) (4,470) (2,082) 47 (4,070) (2,384) (1,686) 71 Gains less losses from trading sugar derivatives 123 44 79 181 32 44 (11) (26) Gross profit 944 1,957 (1,012) (52) 559 1,224 (666) (54) Gross profit margin 13 31-18 - 12 34-22 - Distribution and selling General and administrative (617) (593) (24) 4 (351) (322) (29) 9 (363) (318) (46) 14 (154) (127) (28) 22 2
Other operating ()/ (61) 15 (77) (501) (65) 5 (71) (1,295) income, net Operating (loss)/profit (97) 1,062 (1,159) (109) (11) 781 (793) (101) Adjusted EBITDA 292 1,236 (943) (76) 213 877 (664) (76) Adjusted EBITDA margin 4 19-15 5 25-20 Sales in sugar segment increased as a result of sales volume increase which was partially offset by decrease in sales prices. Sales and production volumes and the average sales prices per kilogram (excl. VAT) were as follows: Sugar production volume (in thousand tons), incl. 142 112 31 28 109 49 60 121 beet sugar 34 62 (28) (45) - - - - cane sugar 108 49 59 120 108 49 59 120 Sales volume (in thousand tons) 291 245 45 19 179 133 46 34 Sale price (rubles per kg, excl. VAT) 24 25 (1) (4) 24 26 (1) (5) Cost of sales increased by 47 due to the following main factors: increase in sales volume; increase in production volume of raw cane sugar that has higher costs per unit comparing to beet sugar; decreased sugar beet conversion ratio for the harvest of comparing to the harvest of 2011. Exceeded growth in cost of sales in comparison with sales resulted in decreased profitability of the segment. Segment Financial results of meat segment for 1H and Q2 compared to 1H and Q2 respectively are presented in the table below: Sales 2,508 2,625 (118) (4) 1,434 1,402 32 2 (Loss)/gain on revaluation of biological assets (58) 1,076 (1,134) (105) 190 580 (390) (67) Cost of sales (2,342) (2,517) 176 (7) (1,396) (1,354) (42) 3 Gross profit 108 1,184 (1,076) (91) 228 628 (400) (64) Gross profit margin 4 45-41 16 45-29 Gross profit excl. effect of biological assets revaluation (21) 1,115 (1,136) (102) (38) 583 (621) (106) 3
Adjusted gross profit margin -1 42-43 -3 42-44 Distribution and selling (15) (10) (6) 58 (5) 6 (11) (182) General and administrative (174) (158) (15) 10 (83) (79) (4) 5 Other operating income/(), net 202 (59) 261 (440) 201 (80) 282 (351) Operating profit 120 956 (836) (87) 341 475 (133) (28) Adjusted EBITDA 455 1,215 (760) (63) 406 659 (253) (38) Adjusted EBITDA margin 18 46-28 28 47-19 Decrease in Sales by 4 was driven by opposing dynamics in prices and sales volumes of pork. Sales prices dropped by 25. Sales volume of pork more than doubled as a result of launching new pig breeding facilities in both the Belgorod and Tambov regions. Resulted increase in internal consumption of the fodder led to the termination of mixed fodder sales to third parties. Sales volumes by product and the average sales prices per kilogram (excl. VAT) were as follows: Sales volume (in thousand tons): pork 44 29 15 52 24 15 9 60 fodder - 26 (26) (100) - 14 (14) (100) Sale prices (rubles per kg, excl. VAT): pork 57 82 (25) (31) 58 83 (24) (29) fodder - 11 (11) (100) - 11 (11) (100) Minor Loss on revaluation of biological assets (pigs) in 1H compared to significant profit in 1H is explained by drop in pork market prices and increase in cost of production. This increase was in turn driven by an increase in grain prices and by the launch of new pig breeding facilities which had not reached full capacity utilization and therefore had higher costs per unit of production as compared to established facilities. Other operating income, net in 1H mainly comprised of the government grants provided in Belgorod region for support of pork producers in market conditions of increased feed costs. The total government grants included in other operating income of the segment in 1H amounted to RR 248 million compared to RR 2 million in 1H. The breakdown of adjusted EBITDA between Belgorod and Tambov is as follows: Six months Belgorod Tambov Six month Belgorod Tambov Belgorod Tambov Belgorod Tambov Sales to 3rd parties and other segments 2,014 494 2,624 1 1,155 279 1,401 1 Adjusted EBITDA 621 (167) 1,264 (49) 472 (66) 698 (38) Adjusted EBITDA margin 31-34 48-41 -24 50-4
Negative dynamics in profitability and Adjusted EBITDA figure for the meat segment was driven by a decrease in sales prices accompanied by an increase in feed costs. Increase in losses of Tambov Bacon, that started sales of consumable livestock only in Q4, had an additional negative impact on the Adjusted EBITDA for the segment. Agricultural Segment The area of controlled land of the segment now stands at 454 thousand hectares. Financial results of the agricultural segment for 1H and Q2 compared to 1H and Q2 respectively are presented below: Sales 1,201 1,071 130 12 349 272 77 28 Cost of sales (990) (922) (68) 7 (293) (315) 21 (7) Gross profit/(loss) 211 149 62 42 56 (42) 98 (232) Gross profit margin 18 14 4 16-16 32 Gross profit excl. effect of biological assets revaluation attributable to 563 298 265 89 142 (33) 174 (533) realized crops included in Cost of sales Adjusted gross profit margin 47 28 19 41-12 53 Distribution and selling (155) (100) (55) 54 (41) 10 (51) (536) General and administrative (290) (322) 33 (10) (128) (167) 39 (23) Other operating income/(), net 48 (37) 85 (228) 51 (23) 74 (317) Operating loss (185) (311) 125 (40) (64) (224) 160 (72) Adjusted EBITDA 380 21 359 1,696 157 (111) 269 (241) Adjusted EBITDA margin 32 2 30 45-41 86 Sales increased by 12 as the result of an increase in sales prices and grain sales volumes, partially offset by a decrease in the sales volume of sugar beet. Sales volumes by product were as follows: thousand tons sugar beet 76 163 (87) (54) - - - - grain 108 98 10 10 30 27 3 12 incl. sold to segment 8 1 7 604 - - - - sunflower seeds - 4 (4) (100) - - - - incl. sold to segment - - - - - - - - Sales volumes of grain include sales of wheat, barley, corn, peas and soya beans. All sugar beet is sold to the sugar segment. The average sale prices per kilogram (excl. VAT) were as follows: 5
RR per kilogram, excl. VAT wheat 8.2 4.6 3.6 80 8.2 5.6 2.6 46 barley 7.4 4.7 2.7 57 7.3 4.7 2.6 54 sunflower seeds 14.7 9.0 5.7 63 - - - - peas 8.5 6.3 2.2 35 8.4 6.2 2.2 35 corn 2.4 4.8 (2.4) (50) 2.4 4.6 (2.2) (47) Oil segment Financial results of the oil segment for 1H and Q2 compared to 1H and Q2 respectively are presented below: Sales 3,536 4,359 (824) (19) 1,585 2,536 (951) (37) Cost of sales (2,707) (2,832) 125 (4) (1,201) (1,636) 435 (27) Gross profit 829 1,527 (699) (46) 385 900 (516) (57) Gross profit margin 23 35-12 24 35-11 Distribution and selling (539) (469) (70) 15 (366) (264) (103) 39 General and administrative (189) (174) (15) 9 (89) (79) (10) 12 Other operating income/(), net 76 (12) 88 (743) 41 (3) 44 (1,574) Operating profit/(loss) 177 873 (696) (80) (30) 555 (584) (105) Adjusted EBITDA 249 1,020 (771) (76) 6 627 (622) (99) Adjusted EBITDA margin 7 23-16 0 25-24 The breakdown of Sales, Gross profit and Adjusted EBITDA between the Samara oil and Ekaterinburg fat is as follows: Six months Samara oil Ekat. fat Six month Samara oil Ekat. fat Samara oil Ekat. fat Samara oil Ekat. fat Sales to 3rd parties and other segments 1,087 2,449 2,072 2,287 283 1,303 1,362 1,174 Internal sales 642-752 - 307-428 - Gross profit 196 633 874 653 42 342 566 334 Gross profit margin 11 26 31 29 7 26 32 28 Adjusted EBITDA 29 220 625 394 (90) 95 420 207 Adjusted EBITDA margin 2 9 22 17-15 7 23 18 Consolidated sales of the segments decreased as a result of a significant decrease in 3 rd parties sales volumes at the Samara oil. The volume of the raw oil and meal sales fell because of the smaller volumes of production that in turn were caused by the overall decrease in the market 6
supply of sunflower seeds and related high prices of seeds in late and early. The effect of raw oil sales decrease was partly offset by an increase in sales volumes at the Ekaterinburg fat and increase in sales prices of the segment. Sales volumes by product were as follows: thousand tons mayonnaise 26 25 1 3 15 14 0 3 margarine 17 16 2 11 8 7 2 25 raw oil, 3rd parties sales 22 55 (34) (61) 5 36 (30) (85) raw oil, internal sales 19 24 (5) (19) 9 14 (4) (32) meal 39 71 (32) (45) 11 39 (28) (71) The average sale prices per kilogram (excl. VAT) for sales to third parties were as follows: RR per kilogram, excl. VAT mayonnaise 55.9 54.0 2 3 56.1 54.0 2 4 margarine 50.5 49.8 1 1 51.1 50.2 1 2 raw oil, 3rd parties sales 33.8 32.4 1 4 33.5 33.1 0 1 meal 9.1 4.1 5 124 9.4 4.6 5 103 Cost of sales decreased insignificantly, but this comprised of the two significant and opposed dynamics: a decrease as a result of the Samara oil s reduction in sales volumes and an increase as a result of sunflower seed prices increase. The rise in sunflower seeds market prices together with a reduction of the share of raw oil used in production of mayonnaise and margarine and produced internally led to the decrease in the segment s profitability. Key consolidated cash flow indicators Net cash from operating activities, incl. 3,472 3,256 7 2,154 1,333 62 Operating cash flow before working capital s 1,153 3,839-70 567 2,371-76 Working capital s 2,483 (381) -752 1,648 (934) -277 Net cash from/ (used) in investing activities, incl. 6,788 (2,951) 330 4,533 (3,637) 225 Purchases of property, and equipment and inventories (1,693) (3,601) 53 (1,178) (2,303) 49 int for construction Investments in financial assets related to financing activities(*) 8,441 793 965 5,741 (1,143) 602 Net cash (used in) / from financing activities (10,341) (4,436) 133 (5,835) 1,806-423 Net (decrease) / increase in cash and cash equivalents (65) (4,115) -98 860 (475) -281 (*) See Appendix 4 7
The main investments in property, and equipment and inventories int for construction in 1H were made in the meat segment in the amount of RR 775 million (1H : RR 2,661 million) and were related to the construction of a new pig-breeding complex and a fodder in Tambov region. Significant investments were also made in the agricultural segment in the amount of RR 527 million (1H : RR 557 million), representing purchases of machinery and equipment, and in the sugar division in the amount of RR 266 million (1H : RR 339 million). Debt position and liquidity management 31 December Gross debt 38,920 48,540-20 Short term borrowings 19,565 24,414-20 Long term borrowings 19,355 24,126-20 Net debt 15,170 17,257-12 Short term borrowings, net (2,858) (2,379) 20 Long term borrowings, net 18,027 19,636-8 Adjusted EBITDA (LTM***) 6,384 8,781-27 Net debt/adjusted EBITDA (LTM) 2.4 2.0 The Group maintained a healthy debt structure; 58 of net debt relates to amounts with more than 3 years maturity. Net finance expense Net interest expense (1,140) (530) 115 (403) (191) 111 Gross interest expense (1,903) (1,022) 86 (915) (499) 83 Reimbursement of interest expense 763 492 55 512 308 66 Interest income 1,160 533 118 580 266 118 Other financial, net (6) - - - 133-100 Total net finance expense 14 3 367 177 208-15 In 1H the Group continued to enjoy benefits from the state agriculture subsidies program. RR 763 million of subsidies received had covered 40 of gross interest expense. (*) Adjusted EBITDA is defined as operating profit before taking into account (i) depreciation, (ii) other operating income, net (other than reimbursement of fuel and fertilizers and feed costs (government grants)), (iii) the difference between gain on revaluation of biological assets and agricultural produce recognized during the period and the gain on initial recognition of agricultural produce attributable to realized agricultural produce together with revaluation of biological assets attributable to realized biological assets included in cost of sales for the period (iv) provision/(reversal of provision) for net realizable value, (v) share-based remuneration (see Appendix 2 for the detailed calculation of Adjusted EBITDA). Adjusted EBITDA is not a measure of financial performance under IFRS. You should not consider it as an alternative to profit for the period as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and therefore comparability may be limited. We believe that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions of subsidiaries and other investments and our ability to incur and service debt. (**) The Group determines the net debt as short-term borrowings and long-term borrowings less cash and cash equivalents, bank deposits and bank promissory notes within short-term and long-term investments. (***) LTM The abbreviation for the Last twelve months. 8
Note: ROS AGRO PLC (LSE: AGRO) a holding company of Rusagro Group, a leading Russian diversified food producer with vertically integrated operations in the following branches: Sugar: We are a leading Russian sugar producer, producing sugar on six production sites from both sugar beets and raw cane sugar. We produce white cube sugar and white packaged sugar sold under the brands Chaikofsky, Russkii Sakhar, Brauni. Our sugar segment is vertically integrated with sugar beet cultivation in our agriculture segment, through which we strive to ensure a consistent supply of sugar beets. : Our pig breeding project was launched in 2006 and, according to the National Union of Pig Breeders, is currently the fifth largest pig breeding complex in Russia. We have implemented best practices in biosecurity at our pig farms. Agricultural: The Group currently controls what it believes to be one of the largest land banks among Russian agriculture producers, with approximately 454 thousand hectares of land under our control located in the highly fertile Black Earth region of Russia, in the Belgorod, Tambov and Voronezh regions. Land and production sites are strategically located within the same regions to optimize efficiency and minimize logistical costs. We believe we are one of the major sugar beet producers in Russia, and our agricultural segment also produces winter wheat and barley, sunflower products and soybeans. These products are partially consumed by the meat segment, supporting a synergistic effect and lowering price risk. Oil: We are a leading producer of mayonnaise and consumer margarine in Russia, such as Provansal EZhK and Schedroe Leto. In January the Company has begun production of mayonnaise under brand "Mechta Khozyayki". Our oil extraction located in Samara (Samara oil ) enables us to control the source of 100 of the vegetable oil required by our oil and fats production in Ekaterinburg (Ekaterinburg fat ). Forward-looking statements This announcement includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements do not relate to historical or current events, or to any future financial or operational activity of the Group. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond the Rusagro Group s control. As a result, actual future results may differ materially from the plans and expectations set out in these forward-looking statements. The Group undertakes no obligation to release the results of any revisions to any forwardlooking statements that may occur due to any in its expectations or to reflect events or circumstances after the date of this document. 9
Rusagro management is organizing a conference call about its Q1 financial results for investors and analysts. Details of call: Date 30 August Time 5:00 PM (Moscow) / 2:00 PM (London) / 9:00 AM (New-York) at the same day Subject ROS AGRO PLC 6M Financial Results UK Toll Free UK Local Line 0800-358-5271 44-20-7190-1595 USA Toll Free USA Local Line 1-877-941-6013 1-480-629-9822 Russia Toll Free 7 (495) 580 9543 Conference ID 4636810 Contacts: Sergey Tribunsky Chief Investment Officer (Deputy CEO on Investment) LLC Rusagro Group Phone: +7 495 363 16 61 stribunsky@rusagrogroup.ru Vladimir Gromov First Deputy CEO LLC Rusagro Group Phone: +7 495 363 16 61 vgromov@rusagrogroup.ru 10
Appendix 1. Unaudited consolidated statement of comprehensive income for the six months (in RR thousand) : : Sales 14,343,130 14,059,739 7,926,342 7,758,205 Gain on revaluation of biological assets and agriculture produce (58,114) 1,075,972 189,901 579,683 Cost of sales (12,313,854) (10,165,445) (6,883,565) (5,529,965) Gains less losses from trading sugar derivatives 122,839 43,754 32,294 43,597 Gross profit 2,094,001 5,014,020 1,264,972 2,851,519 Distribution and selling (1,272,763) (1,122,783) (763,387) (569,316) General and administrative (1,214,433) (1,167,844) (520,371) (530,911) Share-based remuneration (125,773) (258,391) (63,234) (129,195) Other operating income/ (), net 264,300 (103,948) 224,758 (99,494) Operating profit (254,668) 2,361,054 142,738 1,522,603 Interest expense (1,140,934) (529,926) (403,171) (191,600) Interest income 1,160,340 533,405 579,851 265,859 Other financial ()/ income, net (6,336) 275 (95) 133,410 (Loss)/ profit before taxation (241,598) 2,364,808 319,323 1,730,272 Income tax expense (41,031) (447,403) (24,011) (370,501) (Loss)/ profit for the period (282,629) 1,917,405 295,312 1,359,771 Total comprehensive (loss)/ income for the period (282,629) 1,917,405 295,312 1,359,771 (Loss)/ profit is attributable to: Owners of ROS AGRO PLC (282,686) 1,789,872 298,315 1,269,646 Non-controlling interest 57 127,533 (3,003) 90,125 (Loss)/ profit for the period (282,629) 1,917,405 295,312 1,359,771 Total comprehensive (loss)/ income is attributable to: Owners of ROS AGRO PLC (282,686) 1,789,872 298,315 1,269,646 Non-controlling interest 57 127,533 (3,003) 90,125 Total comprehensive (loss)/ income for the period (282,629) 1,917,405 295,312 1,359,771 Earnings per ordinary share for (loss)/ profit attributable to the equity holders of ROS AGRO PLC, basic and diluted (in RR per share) (11.98) 75.39 12.64 53.48 11
Appendix 2. Unaudited segment information for the six months (in RR thousand) Sugar Other agriculture Oil Other Eliminations Total Sales 7,373,742 2,507,609 1,201,269 3,535,521 76,608 (351,619) 14,343,130 Gain on revaluation of biological assets and agriculture produce - (58,114) - - - - (58,114) Cost of sales (6,552,127) (2,341,898) (989,930) (2,706,800) (20) 276,920 (12,313,854) incl. Depreciation (304,881) (408,508) (97,505) (115,276) - (18,400) (944,570) Gains less losses from trading sugar derivatives 122,839 - - - - - 122,839 Gross profit 944,454 107,598 211,339 828,722 76,588 (74,699) 2,094,000 Distribution and Selling, General and administrative (980,009) (189,115) (444,465) (727,578) (234,474) 88,446 (2,487,196) incl. Depreciation (52,836) (6,721) (17,724) (32,646) (10,269) 1,244 (118,951) Share-based remuneration - - - - (125,773) - (125,773) Other operating income/(), net (61,359) 201,608 47,760 75,846 998,255 (997,810) 264,300 incl. Reimbursement of fuel and fertilisers and feed costs (government grants) - 248,456 146,305 - - - 394,760 Operating profit (96,915) 120,090 (185,366) 176,989 714,596 (984,063) (254,669) Adjustments: Depreciation included in Operating Profit 357,717 415,228 115,229 147,921 10,269 17,156 1,063,521 Other operating (income) /, net 61,359 (201,608) (47,760) (75,846) (998,255) 997,810 (264,300) Share-based remuneration - - - - 125,773-125,773 Reimbursement of fuel and fertilisers and feed costs (government grants) - 248,456 146,305 - - - 394,760 Gain on revaluation of biological assets and agriculture produce - 58,114 - - - - 58,114 Gain on initial recognition of agricultural produce attributable to realised agricultural produce - - 330,780 - - 321,376 652,157 Revaluation of biological assets attributable to realised biological assets and included in cost of sales - (186,672) 20,617 - - - (166,055) Provision/ (Reversal) for net realizable value costs (30,090) 1,083 - - - - (29,006) Adjusted EBITDA* 292,072 454,693 379,804 249,065 (147,618) 352,280 1,580,296 * Non-IFRS measure 12
Appendix 2 (continued). Unaudited segment information for the six months (in RR thousand) Sugar Other agriculture Oil Other Eliminations Total Sales 6,383,109 2,625,321 1,071,036 4,359,350 142,803 (521,880) 14,059,739 Gain on revaluation of biological assets and agriculture produce - 1,075,972 - - - - 1,075,972 Cost of sales (4,470,157) (2,517,429) (921,905) (2,831,905) - 575,952 (10,165,444) incl. Depreciation (241,570) (284,736) (106,722) (115,011) - (14,440) (762,480) Gains less losses from trading sugar derivatives 43,754 - - - - - 43,754 Gross profit 1,956,706 1,183,863 149,131 1,527,445 142,803 54,072 5,014,021 Distribution and Selling, General and administrative (910,297) (168,104) (422,604) (642,780) (231,077) 84,236 (2,290,626) incl. Depreciation (34,228) (8,891) (25,513) (20,102) (4,960) - (93,695) Share-based remuneration - - - - (258,391) - (258,391) Other operating income/(), net 15,315 (59,302) (37,224) (11,794) 5,287 (16,230) (103,948) incl. Reimbursement of fuel and fertilisers and feed costs (government grants) - 1,641 13,814 - - - 15,455 Operating profit 1,061,724 956,457 (310,697) 872,871 (341,378) 122,078 2,361,055 Adjustments: Depreciation included in Operating Profit 275,799 293,628 132,235 135,113 4,960 14,440 856,175 Other operating (income) /, net (15,315) 59,302 37,224 11,794 (5,287) 16,230 103,948 Share-based remuneration - - - - 258,391-258,391 Reimbursement of fuel and fertilisers and feed costs (government grants) - 1,641 13,814 - - - 15,455 Gain/ (loss) on revaluation of biological assets and agriculture produce - (1,075,972) - - - - (1,075,972) Gain on initial recognition of agricultural produce attributable to realised agricultural produce - - 148,569 - - 417,105 565,674 Revaluation of biological assets attrubitable to realised biological assets and included in cost of sales - 1,006,733 - - - - 1,006,733 Provision/ (Reversal) for net realizable value costs (86,641) (26,846) - - - - (113,487) Adjusted EBITDA* 1,235,567 1,214,944 21,144 1,019,778 (83,314) 569,854 3,977,973 * Non-IFRS measure 13
Appendix 3. Unaudited consolidated statement of financial position as at (in RR thousand) 31 December ASSETS Current assets Cash and cash equivalents 1,955,038 2,019,867 Short-term investments 21,424,982 25,532,275 Trade and other receivables 1,632,090 1,811,768 Prepayments 429,714 538,480 Current income tax receivable 157,473 128,881 Other taxes receivable 1,325,361 2,585,889 Inventories 7,279,713 13,441,518 Short-term biological assets 5,836,760 1,244,129 Total current assets 40,041,131 47,302,807 Non-current assets Property, and equipment 28,509,300 27,453,447 Inventories int for construction 401,702 1,160,022 Goodwill 1,175,578 1,175,578 Advances paid for property, and equipment 1,053,094 1,199,625 Advances paid for intangible assets 155,145 246,010 Long-term biological assets 1,604,034 1,352,059 Long-term investments 1,562,425 4,721,083 Deferred income tax assets 193,650 237,838 Other intangible assets 130,977 56,553 Restricted cash 53,460 91,111 Total non-current assets 34,839,366 37,693,326 Total assets 74,880,497 84,996,133 LIABILITIES AND EQUITY Current liabilities Short-term borrowings 19,564,534 24,413,533 Trade and other payables 2,786,459 2,615,403 Current income tax payable 20,684 59,735 Other taxes payable 1,017,442 1,274,876 Total current liabilities 23,389,118 28,363,547 Non-current liabilities Long-term borrowings 19,355,148 24,126,365 Government grants 870,678 722,617 Deferred income tax liability 237,412 337,524 Total non-current liabilities 20,463,239 25,186,506 Total liabilities 43,852,357 53,550,053 Equity Share capital 9,734 9,734 Treasury shares (461,847) (461,847) Share premium 10,557,573 10,557,573 Share-based payment reserve 1,184,268 1,058,495 Retained earnings 19,729,852 20,211,049 Equity attributable to owners of ROS AGRO PLC 31,019,581 31,375,004 Non-controlling interest 8,559 71,076 Total equity 31,028,140 31,446,080 Total liabilities and equity 74,880,497 84,996,133 14
Appendix 4. Unaudited consolidated statement of cash flows for the six months 30 June (in RR thousand) Cash flows from operating activities (Loss)/ profit before taxation (241,598) 2,364,808 Adjustments for: Depreciation of property, and equipment 1,063,521 856,175 Interest expense 1,903,463 1,022,176 Government grants (1,207,686) (554,060) Interest income (1,160,340) (533,405) Gain on initial recognition of agricultural produce, net 652,157 565,674 Change in provision for net realisable value of inventory (29,006) (113,487) Revaluation of biological assets, net (107,941) (69,238) Change in provision for impairment of receivables and prepayments 121,121 13,199 Unrealised foreign ex (gain) / loss (22,201) (57,700) Share based remuneration 125,773 258,391 Lost harvest write-off 13,798 30,212 Change in provision for impairment of advances paid for property, and equipment 18,806 37,262 Other non-cash and non-operating, net 23,428 19,066 Operating cash flow before working capital s 1,153,295 3,839,073 Change in trade and other receivables and prepayments 109,096 (81,423) Change in other taxes receivable 1,260,529 (141,258) Change in inventories 6,204,710 3,087,587 Change in biological assets (4,753,757) (4,167,814) Change in trade and other payables (80,035) 1,109,910 Change in other taxes payable (257,434) (188,048) Cash generated from operations 3,636,404 3,458,027 Income tax paid (164,599) (201,727) Net cash from operating activities 3,471,804 3,256,300 Cash flows from investing activities Purchases of property, and equipment (1,671,141) (2,883,064) Purchases of other intangible assets (7,023) (3,705) Proceeds from sales of property, and equipment 39,477 15,393 Purchases of inventories int for construction (22,240) (718,238) Change in promissory notes* - (292,236) Change in cash on bank deposits* 7,467,954 718,532 Loans given (37,500) (113,923) Loans repaid 5,906 3,894 Interest received* 973,279 366,627 Movement in restricted cash 39,527 (44,175) Net cash from/ (used in) investing activities 6,788,238 (2,950,894) Cash flows from financing activities Proceeds from borrowings 4,161,443 11,306,418 Repayment of borrowings (13,734,516) (14,863,114) Interest paid (2,172,356) (1,300,932) Purchases of non-controlling interest (11,084) (182,617) Dividends paid (107) - Proceeds from government grants 1,415,939 604,047 Net cash used in financing activities (10,340,682) (4,436,198) Net effect of ex rate s on cash and cash equivalents 15,810 16,148 Net decrease in cash and cash equivalents (64,830) (4,114,644) Cash and cash equivalents at the beginning of the period 2,019,867 5,457,567 Cash and cash equivalents at the end of the period 1,955,038 1,342,923 (*) For the purpose of conformity with the methodology of the Group's net debt calculation, investments in financial assets related to financial activities are presented in Cash flows from financing activities in the Group's management accounts. 15